Intel Beats Q2 Estimates with $16.1B Revenue, But Key Foundry Catalyst 'Not Yet Arrived'

Intel shares rose 2.5% in pre-market trading on Friday following a strong second-quarter earnings beat, though analysts remained cautious on the company's long-term outlook. Q2 revenue reached $16.1 billion, up 25% and beating analyst estimates of $14.5 billion, while earnings per share came in at $0.42 versus expectations of $0.22.

Despite raising price targets, Wall Street firms noted that the most important catalyst for Intel's turnaround remains missing: a signed external foundry customer. Morgan Stanley, Stifel, Mizuho, and other analysts said conviction around the foundry business remains low, with several describing server market share prospects as mixed at best. Intel also announced plans to increase capital spending to $20 billion this year, up from a previous forecast of $18 billion.